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Outline

Why this analysis is necessary??

  • 74% cereal sales of us and our competitors have no ads and no promotions

    • good chance to increase awareness and revenue

What data we used?? (Sample of 21850 observations)

  • Producers: General Mills, Kelloggs, Post
  • Sale Revenue=(Price*Units)
  • In Store Promotion
  • Advertising Volume
  • No bias [use the centrality of numeric data (Median Revenue)]

Recommendations

  • Best Strategy: combining advertising and promotion together
  • If promotion only(discount rate under 42%)
  • If giving advertising only: small ads overall, or medium ads on toasted, small ads for cinnamon toast and regular flavor, no ads on cocoa

Best Strategy: Combining Promotion and Advertising

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Alternative Strategy 1: Promotion only can increase revenue

Alternative Strategy 2: Advertising only can increase revenue